Page 46 - pd297-Sept21-mag-web

DIGGeRs & DeALeRs ReVIeW
ASX: MLG

IGO gets its battery motor running

f the race has started for Australian mining FY2023, the company would have to work energy plans is a second generation of met-
Ito join the clean energy revolution, IGO Ltd even harder to maintain margins. als production but the company remains
couldn’t have wished for a better opening lap. “Like the rest of the industry we are seeing committed to finding a solution.
More than any other ASX-listed company, cost pressures on oil, ocean freight and peo- Bradford said the company would continue
IGO has fully committed to the clean energy ple because the labour market is so tight,” he to pursue “disciplined and accretive M&A”
agenda, selling its major gold asset to fund a said. “But we focus on how we can continue and additional vertically integrated and down-
lithium acquisition and establishing a compre- to optimise Nova and we are collaborating stream opportunities.
hensive sustainability initiative which includes with [mining contractor] Barminco to roll out The company also hasn’t forgotten its roots
a carbon neutral roadmap with internal car- smart solution underground to improve safety as an explorer, investing $65 million in the
bon price, funds from which will be dedicated and productivity and reduce cost.” hunt for more nickel, copper and cobalt this
to lowering and offsetting carbon emissions. On the company’s newest investment, the year.
The clean energy thematic is also deliver- Greenbushes lithium mine and Kwinana lith-
ing benefits to the IGO bottom line. Speaking ium hydroxide plant, Bradford said IGO had
at Diggers & Dealers, managing director Pe- got its hands on a world-class portfolio with
ter Bradford presented a company which was immediate and longer-term opportunity.
setting records on a regular basis. Lithium growth options include the addition
“We delivered outstanding operation per- of a tailings retreatment project expected to
formance in FY2021 which was reflected in deliver an additional 300,000 tpa spodumene
outstanding financial metrics across the busi- concentrate from 2022, as well as plans for a
ness; record revenue, record NPAT, record third and fourth production train which could
free cash flow and record net cash at bank,” see output double from the current 1.2 mtpa
he said. by 2027.
Although the sale of its 30% interest in the At Kwinana, the JV partners are expected
Tropicana gold mine and its acquisition of a to produce first lithium hydroxide in the “com-
share in Tianqi Lithium Ltd’s West Australian ing months”. That product will be shipped
lithium business dominated the P&L state- to customers in Korea and Europe, with ris-
ment for the year, it was the performance at ing demand from those markets and others
the company’s Nova nickel mine which re- expected to encourage IGO and Tianqi to
mained the underlying success of IGO. The restart construction of the second hydroxide
mine produced $392 million of free cash flow plant at Kwinana next year, lifting capacity
for the year, beating cash cost guidance and to 48,000 tpa. The JV also has the option to
hitting the top end of production guidance. double capacity again to 96,000 tpa by the
Bradford admitted that with the Nova grade end of the decade. Peter Bradford
profile projected to soften in FY2022 and The one element missing in IGO’s clean

Stavely retains its sizzle

tavely Minerals Ltd is not anticipating any with about 20% to go to the south-east, where
S major delays to the highly awaited release we have a little bit of an access issue, but we’re
of a maiden resource and scoping study for its working through that,” Cairns said.
Cayley Lode discovery in western Victoria after “We expect we’ll have that access after the
being forced to pause drilling last month due to winter rains and we’ll be able to finish this re-
heavy rainfall in the emerging copper province. source off with only 16 holes to be drilled and Chris Cairns
Since the breakthrough discovery at the then roll into the resource estimation and the
Thursday’s Gossan prospect in September scoping study fairly quickly thereafter.” discovery, there’s been a bit of exuberance
2019, the company has been undertaking an Cairns said the company was also using the and people are just waiting for us to finish the
extensive resource drill-out of Cayley Lode. pause in the drilling to review “a bunch of near- resource drill out and then come out with the
Unfortunately due to torrential weather in the miss opportunities” identified from a recent air- numbers in a scoping study,” Cairns said.
region through the winter months, the rig which borne survey and regional geochemistry. “The project really is turning out the way we
was set to drill the final 16 holes in the pro- All eyes have been on Stavely since the envisaged it; Phase 1 open pit pays for all of
gramme had to be demobilised and now won’t company returned a remarkable hit of 32m @ the development, it’s robust in its own right,
return to site until October to finish the job. 5.88% copper, 1 g/t gold and 58 g/t silver from but then you’re likely to have a 20-year under-
Stavely executive chairman Chris Cairns 62m almost two years ago, having spent more ground operation after that in a similar style to
is confident the company can complete the than five years searching for a deeper porphy- the Cobar Basin base metal deposits.
remaining holes required for the resource cal- ry in the style of the famed Cadia-Ridgeway “We have absolutely the best, dominant po-
culation within the 10 weeks it will have before system. sition in this emerging copper province.”
summer arrives. “Currently share price wise we’re in the or- – Michael Washbourne
“We’ve drilled out roughly about 80% of it, phan period if you like, where we’ve made the

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